Walker shakes up staff at jobs agency after bungled offer

Madison - Gov. Scott Walker is shaking up the leadership of the state's flagship jobs agency, putting someone from his inner circle into the No. 2 job in the aftermath of a mishandled bidding process that gave the appearance of favoritism to one of the bidding companies.

Ryan Murray, the governor's deputy chief of staff, will move into the role of chief operating officer at the Wisconsin Economic Development Corp.

Murray said he could help achieve Walker's vision for economic development, noting that he had been the one to first bring the idea of creating the agency to the governor after an outside group suggested it during the 2010 campaign.

The quasi-public WEDC was formed by the governor and lawmakers in July 2011 to replace the state Department of Commerce.

After its first year, the agency has received mixed reviews.

Under the most reliable measure, Wisconsin created 19,551 jobs overall in 2011, lagging behind the nation and the 33,660 jobs that were created in 2010.

WEDC chief executive officer Paul Jadin will remain in his post. Mike Klonsinski, the current chief operating officer, will move into the role of chief financial officer. Eric Schroeder, the current chief financial officer, will leave.

State Sen. Rich Zipperer (R-City of Pewaukee) will give up his legislative seat to replace Murray in the governor's office. That will lead to a special election to fill his post.

Murray, who is just 30 but who has held important roles for the governor for the last two years, said the Walker administration will be shuffling a few other positions in the next few weeks - a common move after an election.

"One thing the recall has given the governor is a unique opportunity . . . to do a new transition in the middle of his term," Murray said.

Assembly Minority Leader Peter Barca (D-Kenosha), who sits on WEDC's board, said Murray was a political aide who lacked the business experience to help run the agency charged with boosting the state's still struggling economy. He asked whether Walker had considered other applicants.

"I like Ryan Murray, but he doesn't have the economic development experience needed for this job. It's a bad fit," said Barca, who previously served as the Midwest regional administrator for the federal Small Business Administration.

Bidding suspended

One problem at the WEDC that drew headlines in recent weeks involved the information technology company Skyward of Stevens Point, which was bidding on a state contract to create a student-information system for Wisconsin.

The competitive bidding process had to be suspended and restarted by the Walker administration after it was discovered that the WEDC had offered Skyward tax credits if it won the contract. Skyward sells management software that's used by more than half of Wisconsin's 424 school districts, and it had been vocal about leaving the state if it didn't receive the award.

Jadin had previously said that his agency's attorney had signed off on the legality of the "soft offer." But Murray made clear that the Walker administration would not be repeating the maneuver because it had the appearance of violating the competitive bid.

He said the WEDC and previously the Department of Commerce under Walker and past governors had not been sharing information with the governor's office. That could have highlighted the potential problem with the offer; Murray said that would change. A review of other past offers has not turned up any other problems so far, he said.

Murray said he would help to ensure better lines of communication between the WEDC, other agencies and the governor's office.

"They've made a lot of great strides. I think they have areas for improvement, definitely communications with other state agencies. I think you saw that with Skyward. There was definitely a ball that got dropped there," he said of the WEDC.

Murray said the agency would be executing a marketing plan for the state's businesses as well as seeking to implement the recommendations of a recent state audit that found the state's many other economic development programs in separate agencies still do not coordinate well with each other and with the WEDC.

Murray previously served as Walker's policy and legislative director, his deputy transition director and his 2010 campaign policy director. Before that he worked for Republican senators and had some assignments for them related to economic development.

Murray is making $103,000 a year in his current role and will make $105,000 a year in the WEDC, Walker spokesman Cullen Werwie said.

Klonsinski makes $109,500 a year as the chief operating officer of the WEDC and will retain that same salary in his new role as chief financial officer. Schroeder made $97,500 as CFO.

Farrow to run for spot

Walker named Zipperer on Wednesday as his new deputy chief of staff and senior legal counsel. That move will not change the partisan composition of the Senate since Zipperer represents an overwhelmingly Republican district.

He starts his job in Walker's office on Aug. 6, and his position will have to be filled by a special election. Walker has not said when it will be held, but the earliest the general election could be is Dec. 4, with a primary on Nov. 6.

Zipperer will make $107,000 a year in the position, more than double the $49,943 he makes as a senator, but in line with past deputy chiefs of staff to governors.

Immediately after the announcement, Rep. Paul Farrow (R-Village of Pewaukee), the son of former Lt. Gov. Margaret Farrow, said that he would run for Zipperer's seat, presenting himself as a strong conservative candidate.

Walker also announced his new communications director would be Jocelyn Webster, who has served as chief spokeswoman for the governor's Department of Administration. Webster made $94,500 at the Department of Administration and will make $95,000 in her new role.

Webster replaces Chris Schrimpf, who left as communications director after last month's recall.

In addition to his duties as deputy chief of staff, Zipperer will perform some legal duties, which will run through Walker's chief legal counsel, Brian Hagedorn.

Zipperer's departure from the Legislature comes just two days after Democrats took control of the Senate because of recall elections. Democrats will have a 17-15 majority in the Senate instead of a 17-16 majority, though the Legislature is expected to do little between now and the Nov. 6 election, when control of both houses will be up for grabs.

About Jason Stein

Jason Stein covers the state Capitol and is the author with his colleague Patrick Marley of "More than They Bargained For: Scott Walker, Unions and the Fight for Wisconsin." His work has been recognized by journalism groups such as the American Society of News Editors, the Society of American Business Editors and Writers, and the Association of Capitol Reporters and Editors.

About Patrick Marley

Patrick Marley covers state government and state politics. He is the author, with Journal Sentinel reporter Jason Stein, of "More Than They Bargained For: Scott Walker, Unions and the Fight for Wisconsin.”